- The Asia-Pacific (APAC) region plays a key role in global efforts to reach net-zero and achieve a green energy transition.
- As more countries in the region pick up the pace of development and achieve progress against the backdrop of an ongoing energy crisis, so does the urgency to act with effective transition models.
- We asked leaders how the Asia-Pacific region can do
prioritize energy efficiency and renewable energy in the coming year, while focusing on the role of industries.
The Asia-Pacific (APAC) region plays a key role in global efforts to reach net-zero and achieve a green energy transition.
The region is home to five of the world’s 10 largest emitters (China, India, Indonesia, Japan, and South Korea) and accounts for about 45% of global greenhouse gas emissions due to its significant population, McKinsey & Company reports.
It is also a diverse region that requires local solutions. India, for example, is at a critical decision-making point as it seeks to provide an unprecedented expansion of energy supplies to satisfy its rapidly growing economy in a way that realizes the 2070 net -zero emissions government pledge.
“On the one hand, India can continue to rely on oil-rich countries to supply energy fuels and blue hydrogen carriers towards the transition while occasionally exposing itself to disruptive international prices,” he said. as experts in the field say.
“The alternative route would see India invest heavily in research, development and demonstration to reduce the cost of electrolysis and to complement, and capitalize on, its status as one of the lowest-cost producers of solar power. .” To this end, the authors argue, the path to a prosperous, clean energy future in India lies in green hydrogen, not blue.
As more countries in the region pick up the pace of development and achieve progress against the backdrop of an ongoing energy crisis, so does the urgency to act with effective transition models.
Asia-Pacific countries experience more natural disasters than any other region. Between 2014 and 2017, countries in this region were affected by 55 earthquakes, 217 hurricanes and typhoons, and 236 cases of severe flooding, affecting 650 million people and causing the death of 33,000 people. .
Rapid urbanization and inadequate planning make densely populated urban areas more vulnerable to the effects of climate change, especially near coastal regions and major rivers.
With this context, we asked the leaders what the Asia Pacific region can do
prioritize energy efficiency and renewable energy in the coming year, while focusing on the role of industries.
Here is their vision for accelerating the transition to green energy in the region.
“Energy transition is a long, difficult journey that requires cooperation, patience, understanding, and determination”
Ashok Lavasa, Vice-President for Private Sector Operations and Public-Private Partnerships at the Asian Development Bank (ADB)
The Asia-Pacific region contributes significantly to global greenhouse gas emissions from fossil fuels and is home to hundreds of millions of people who do not have adequate access to electricity or clean cooking fuels. Bold and sustained action is needed to address these issues.
And this action must be inclusive.
Energy transfer is a long, difficult journey that requires cooperation, patience, understanding, and determination. This must lead to major changes, and every change can be met with resistance.
It is important to ensure that all stakeholders are informed, consulted, educated, and involved for achieving a lasting, sustainable, and just transition. The Asian Development Bank (ADB) realizes that to significantly increase the consumption of cheap, clean, modern and reliable energy systems, developing countries need enabling policies, technology transfer, and more concession fund.
Developing countries need enabling policies, technology transfer, and more concessional financing.
—- Ashok Lavasa, Vice-President for Private Sector Operations and Public-Private Partnerships at the Asian Development Bank (ADB)
In 2021, ADB adopted a new energy policy aimed at helping our developing member countries (DMC) accelerate the low-carbon transition in the Asia-Pacific. The energy policy highlights a wide range of important priorities and technologies that our DMCs must consider, especially energy efficiency and renewable energy.
ADB has implemented several innovative initiatives to support the energy transition, such as the flagship Energy Transition Mechanism (ETM) to advance the early retirement of coal power assets and replace them with clean energy. In 2019, we established the ASEAN Catalytic Green Finance Facility to increase investments in green infrastructure in Southeast Asia. With ADB Ventures, we support and invest in start-ups that offer impactful technology solutions that contribute to achieving the Sustainable Development Goals. These are just a few examples of the initiatives we have in place – there are many more to come.
“Is restructuring of coal infrastructure and renewable energy assets an important part of the answer?”
Peter Lacy, Global Sustainability Services Lead & Chief Responsibility Officer, Accenture
As the energy transition accelerates, the transition from coal to renewable energy sources plays an important role in accelerating it, especially in Emerging Markets and Developing Economies, which are home to 75% of the power in coal in the world.
Part of this transition should include converting the oldest and most inefficient coal-fired power plants into renewable energy assets.
The levelized cost of electricity for newly installed renewable energy continues to decrease and, in about 77% of cases, is cheaper than coal power. This number is expected to increase to 99% by 2030.
Part of this transition should include converting the oldest and most inefficient coal-fired power plants into renewable energy assets.
—Peter Lacy, Global Sustainability Services Lead & Chief Responsibility Officer, Accenture
The ability to replace capacity in the same area as a decommissioned coal power plant, ie, repurposing coal power plants to renewable energy plants, brings additional benefits. Examples include Enel and EDP repurposing the Teruel and Sines coal plants in Spain and Portugal, respectively. Among these benefits include enabling reuse of existing land, utilization of existing interconnection lines, re-employment of workers, and reuse of some important assets in equipment.
“Considering the different needs, natural endowments and different social conditions of this great region is the first step”
Shunichi Miyanaga, Chairman of the Board of Mitsubishi Heavy Industries
The Asia-Pacific region is still home to people clamoring for more electricity to improve their lives, and it is an important source of many things enjoyed around the world.
Considering the different needs, natural endowments and different social conditions of this large region is the first step in pursuing a reasonable and affordable energy transition.
Squaring this circle will require all the deployable technologies and sustainable fuels at our disposal: from cleaner use of existing infrastructure such as more efficient gas turbines and CCUS to the development of fully hydrogen and CO2 ecosystem. For example, MHI Group is developing 100% hydrogen-fired gas turbines by 2025 and delivering world-leading CO2 capture systems.
Government incentives must play a part, but we must also share knowledge and best practices, and international cooperation will be key.
—Shunichi Miyanaga, Chairman of the Board of Mitsubishi Heavy Industries
The technology is there. Growing it big enough and fast enough is the real challenge. Government incentives must play a part, but we also need to share knowledge and best practices, and international cooperation will be key.
I believe it is in our power to restore our environment and create a better future, for Asia and the world.